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18 Mar 2015
Crude oil jumps on weak USD
FXStreet (Mumbai) - WTI Crude prices host higher after the US dollar index weakened sharply on the back of a slightly dovish Fed policy statement.
WTI Crude rises to 10-DMA
Prices recovered from the six-year low of USD 42.01/barrel to trade at the 10-DMA located at USD 46.52/barrel. The bearish weekly inventory data released by the Energy Information Administration (EIA) earlier today led the prices to a fresh six-year low of USD 42.01/barrel. Moreover, the concerns of supply glut remain in place, although the sharp decline seen in the USD index pushed the prices higher.
It remains to be seen whether the USD continues to weaken across the board, especially since dropping of the word “patient” from forward guidance has opened doors for a rate hike in June. Fed chairwoman Yellen too said that a rate hike in June cannot be ruled out. Hence, the USD could make a comeback, in which case the Crude prices could erase the gains.
WTI Crude Technical Levels
The immediate resistance is located at 47.67, above which the prices could test the 50-DMA located at 48.93 levels. On the flip side, support is seen at 46.04, under which prices could re-test 43.58 levels.
WTI Crude rises to 10-DMA
Prices recovered from the six-year low of USD 42.01/barrel to trade at the 10-DMA located at USD 46.52/barrel. The bearish weekly inventory data released by the Energy Information Administration (EIA) earlier today led the prices to a fresh six-year low of USD 42.01/barrel. Moreover, the concerns of supply glut remain in place, although the sharp decline seen in the USD index pushed the prices higher.
It remains to be seen whether the USD continues to weaken across the board, especially since dropping of the word “patient” from forward guidance has opened doors for a rate hike in June. Fed chairwoman Yellen too said that a rate hike in June cannot be ruled out. Hence, the USD could make a comeback, in which case the Crude prices could erase the gains.
WTI Crude Technical Levels
The immediate resistance is located at 47.67, above which the prices could test the 50-DMA located at 48.93 levels. On the flip side, support is seen at 46.04, under which prices could re-test 43.58 levels.